Muller becomes the latest major processor to cut milk prices, raising concerns among dairy farmers as the weak market continues to squeeze profits.
Suppliers that meet the criteria of the Müller Advantage program will receive 34.5 payments from March 1, 2026. This is a reduction of one person from the previous price.
The move mirrors recent job cuts announced elsewhere in the sector and highlights the severity of the current economic downturn.
Richard Collins, director of agriculture at Muller Milk & English, said: “The whole dairy market is under huge pressure.”
He said milk supplies continue to increase, adding: “Milk collection remains well above the levels seen at this time last year and market prices continue to fall.”
Mueller said he will continue to closely monitor market conditions. “We will continue to closely track supply and demand trends,” Collins said.
The announcement follows a similar move by First Milk as pressure continues to mount across the dairy industry.
Dairy farmers supplying cooperatives will face cuts from February 1, after First Milk confirmed cuts related to the continued downturn in the market.
From February 1, 2026, First Milk’s milk prices will decrease by 2 percent, making the price of a standard production liter including membership premium 30.25 percent.
Analysts warn that farmgate prices are unlikely to recover in the short term.
Milk prices are expected to remain under pressure into the first half of 2026 due to continued oversupply, according to new analysis from levy body AHDB.
AHDB said the sector entered the year facing a supply-driven downturn, with milk volumes significantly exceeding demand in both the UK and global markets.
British production increased sharply into the autumn, with deliveries in October increasing by about 7% compared to the same month last year. Until the beginning of January, the volume was only around 3-5%, which caused a rapid decline in wholesale prices.
